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BorsodChem shares to be delisted in January

The delisting of shares of BorsodChem and its transformation into a closed company could start as soon as January, one of the investors making a buyout offer for BorsodChem told a press conference in Budapest on Tuesday.

The delisting of shares of Hungarian chemicals company BorsodChem Nyrt and its transformation into a closed company could start as soon as January, Heinrich Pecina of Vienna Capital Partners (VCP), one of the investors making a buyout offer for BorsodChem, told a press conference in Budapest on Tuesday. A buyout offer by First Chemical Holding, a Hungarian purchase vehicle set up by private equity fund Permira, will end on December 15 and the offer's financial close will fall on December 22, he said.

VCP currently holds 21.5% of BorsodChem shares, and will acquire a 13% stake in First Chemical Holding on successful completion of the offer. At the offer price of Ft 30/share, the buyout will cost about Ft 228.5 billion. Permira plans to go ahead with a €500 million development strategy approved by BorsodChem this spring, Thomas Jetter, the director of the fund's chemical division, told the press conference. The fund will pull out of the company around the time the investments are completed, in 2010 and 2011, he said, adding that the pull-out could be delisted as soon as January. (Mti-Eco, Népszava, Magyar Hírlap, Napi Gazdaság)